On October 11, the U.S. Department of Justice (DOJ) announced a $399,990 settlement with Allstar Health Providers Inc., a California home health agency, and its owner, Maria Chua over allegations that they violated the False Claims Act (FCA) through Paycheck Protection Program (PPP) loan fraud.

According to the DOJ, “Chua submitted two PPP loan applications on behalf of Allstar Health Providers in May 2020, and in both applications, she certified that the company would not receive more than one loan prior to Dec. 31, 2020.”

“Despite these certifications, the United States alleged that Allstar Health Providers received two PPP loans in 2020, and thereafter knowingly and improperly retained the second, duplicate loan,” the government alleges.

The settlement stems from a qui tam whistleblower lawsuit filed by J. Bryan Quesenberry. The False Claims Act’s qui tam provisions enable private citizens and private parties to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery.

“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which...

Read Full Story: https://news.google.com/rss/articles/CBMizAFBVV95cUxOaTYxdUdjQmV3NEFTRGZRNmhy...